Two American firms – GE and EMD – have once again been shortlisted for the proposed diesel locomotive factory that will come up in Marhowra in Bihar.

This has been confirmed by multiple sources in the know. EMD was acquired by Caterpillar’s arm, Progress Rail Services, in 2010.

Both the companies had also been shortlisted in 2009, just before the general elections, but the tender was discharged as eventually GE emerged as the single bidder.

With the short-listing over, the Railways now need to invite financial bids for the project, which will ensure that at least one of these American firms will bag the project to supply diesel locomotives to the Railways on a long-term basis.

The selected bidder shall manufacture and supply 700 units of 4,500 horse power diesel electric locomotives and 300 units of 6,000 horse power diesel electric locomotives over an 11-year period.

The winning bidder will also have to undertake the maintenance of the locomotives over a pre-defined period of about 19-20 years. The indicative cost of the Marhowra factory is ₹1,000 crore, according to the request for qualification document.

The tender could generate business worth about ₹18,000-24,000 crore over the next few years, according to an industry source.

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